Income Tax Calculator India
FY 2026-27 · Compare Old vs New Tax Regime · Find Which Saves More
| Component | Old Regime | New Regime |
|---|---|---|
| Gross Income | ||
| Total Deductions | ||
| Taxable Income | ||
| Tax on Income | ||
| Rebate (Sec 87A) | ||
| Surcharge | ||
| 4% Cess | ||
| Total Tax Payable | ||
| Monthly Tax |
🇮🇳 Income Tax Calculator India FY 2026-27
Use this free Income Tax Calculator for FY 2026-27 to calculate your exact income tax liability and compare the Old Tax Regime vs New Tax Regime side by side. Simply enter your gross salary, deductions, and age group to instantly find out which regime saves you more money in AY 2027-28.
📊 Income Tax Slabs FY 2026-27
🆕 New Tax Regime (Default)
| Income Slab | Rate |
|---|---|
| Up to ₹4,00,000 | 0% |
| ₹4L – ₹8L | 5% |
| ₹8L – ₹12L | 10% |
| ₹12L – ₹16L | 15% |
| ₹16L – ₹20L | 20% |
| ₹20L – ₹24L | 25% |
| Above ₹24L | 30% |
Standard deduction of ₹75,000 applies. Rebate u/s 87A for income up to ₹12L.
📜 Old Tax Regime (Below 60 yrs)
| Income Slab | Rate |
|---|---|
| Up to ₹2,50,000 | 0% |
| ₹2.5L – ₹5L | 5% |
| ₹5L – ₹10L | 20% |
| Above ₹10L | 30% |
Standard deduction of ₹50,000. Rebate u/s 87A for income up to ₹5L. Deductions under 80C, 80D etc. allowed.
⚖️ Old Regime vs New Regime – Which is Better?
The best regime depends entirely on how much you can claim in deductions:
- New Regime is better if your deductions (80C + 80D + HRA + home loan) are less than ~₹3.75 lakh
- Old Regime is better if you have high deductions — especially home loan interest + 80C + HRA
- For income up to ₹12 lakh with no deductions: New Regime = ₹0 tax (due to ₹75K std deduction + 87A rebate)
- For income above ₹24 lakh with significant deductions, old regime often saves more
🧮 Key Deductions Under Old Tax Regime
- Section 80C – PF, PPF, ELSS, LIC, tuition fees (Max ₹1,50,000)
- Section 80D – Medical insurance premium (Max ₹25,000 self + ₹25,000 parents)
- Section 24(b) – Home loan interest for self-occupied (Max ₹2,00,000)
- Section 80CCD(1B) – Additional NPS contribution (Max ₹50,000)
- HRA Exemption – Based on rent, salary, and city (metro/non-metro)
- Standard Deduction – ₹50,000 flat for salaried employees
- Section 80TTA – Savings account interest (Max ₹10,000)
- Section 80E – Education loan interest (full deduction)
💡 How to Reduce Income Tax in India (2026)
- ✔ Maximise Section 80C — invest ₹1.5L in ELSS, PPF, or PF every year
- ✔ Buy health insurance — claim 80D deduction for self and parents
- ✔ Take a home loan — claim up to ₹3.5L (80C principal + 24b interest)
- ✔ Contribute to NPS Tier 1 for additional ₹50K deduction under 80CCD(1B)
- ✔ Negotiate salary structure — add HRA, LTA, food allowance components
- ✔ Compare regimes every year — the better choice can change as income grows
❓ Frequently Asked Questions – Income Tax India 2026
1. Which tax regime is better — Old or New?
It depends on your deductions. New regime is better if your total deductions are below ₹3.75 lakh. With higher deductions (home loan, 80C, HRA), the old regime often saves more. Use this calculator to compare instantly.
2. Is income up to ₹12 lakh really tax-free under new regime?
Yes. Under the new regime for FY 2026-27, the ₹75,000 standard deduction brings taxable income to ₹11.25L for a ₹12L salary. The Section 87A rebate of ₹60,000 makes net tax zero for income up to ₹12 lakh gross.
3. What is the standard deduction in FY 2026-27?
₹75,000 under the new tax regime and ₹50,000 under the old tax regime for salaried employees.
4. What is Section 87A rebate?
Section 87A provides a tax rebate to reduce your tax liability to zero if your taxable income is within the threshold — ₹12 lakh under new regime, ₹5 lakh under old regime.
5. Is surcharge applicable on my salary?
Surcharge applies if your income exceeds ₹50 lakh. Rates are: 10% (₹50L–₹1Cr), 15% (₹1Cr–₹2Cr), 25% (₹2Cr–₹5Cr), 37% (above ₹5Cr — capped at 25% under new regime).
6. What is the 4% cess on income tax?
A 4% Health and Education Cess is added on top of income tax plus surcharge. It applies to all taxpayers regardless of income level.
7. Can I switch between old and new regime?
Salaried individuals (without business income) can switch every year while filing ITR. Those with business income can switch only once.
8. What is the income tax slab for senior citizens?
Senior citizens (60–80 years) under old regime get basic exemption up to ₹3 lakh. Super senior citizens (80+) get exemption up to ₹5 lakh. Under new regime, slabs are the same for all age groups.
👉 This calculator provides estimates for FY 2026-27 based on publicly available CBDT tax rules. It assumes standard salaried income. Consult a CA for complex income situations including capital gains, freelance income, or foreign income. Last updated: April 2026.